Date: 04/24/2013

Final
BILL SUMMARY for HB13-1317

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment D). The motion p
Adopt amendment L.003 (Attachment I). The motion p
Adopt amendment L.004 (Attachment K). The motion p
Adopt amendment L.006 (Attachment L). The motion p
Adopt amendment L.007 (Attachment M). The motion p
Adopt amendment L.008 (Attachment N). The motion p
Adopt amendment L.010 (Attachment O). The motion p
Adopt amendment L.013 (Attachment G). The motion w
Adopt amendment L.014 (Attachment P). The motion p
Adopt amendment L.015 (Attachment F). The motion p
Adopt amendment L.016 (Attachment Q). The motion p
Adopt amendment L.017 (Attachment R). The motion p
Adopt amendment L.018 (Attachment J). The motion p
Adopt amendment L.020 (Attachment S). The motion w
Adopt amendment L.021 (Attachment T). The motion p
Adopt amendment L.022 (Attachment U). The motion w
Adopt amendment L.023 (Attachment V). The motion w
Adopt prepared amendment L.013 (Attachment G). The
Adopt severed section 1 of amendment L.002, page 1
Adopt severed section 2 of amendment L.002 (Attach
Refer House Bill 13-1317, as amended, to the Commi		Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection

Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection
Pass Without Objection

Pass Without Objection


Pass Without Objection
Pass Without Objection
PASS
PASS



08:25 AM -- House Bill 13-1317

The committee returned to order. Representative Pabon, prime sponsor, presented House Bill 13-1317, concerning the recommendations made in the public process for the purpose of implementing retail marijuana sales legalized by Section 16 of Article XVIII of the Colorado Constitution. Representative Pabon discussed the passage of Amendment 64 by the voters in 2012, and the work of the Joint Select Committee on the Implementation of Amendment 64 (Joint Select Committee). Representative Pabon provided an overview of the recommendations made by the Joint Select Committee, which became House Bill 13-1317. Representative Pabon discussed the major provisions of the bill.


08:36 AM

Representative Pabon continued to brief the committee on the provisions of House Bill 13-1317, and the potential for the federal government to intervene in Colorado's marijuana trade. Representative Pabon discussed provisions in the bill governing the vertical integration of the state's marijuana trade, and the impact of the bill on the state's established medical marijuana industry. Representative Pabon discussed the position of Washington state on vertical integration of the recreational marijuana trade. Representative Pabon explained the effect of a number of forthcoming amendments to the bill. Representative Pabon responded to questions regarding the use of the state's criminal history record check to verify the qualifications of an applicant seeking to engage in the marijuana trade.


08:48 AM

Representative Pabon responded to questions regarding restrictions in House Bill 13-1317 on the location of retail recreational marijuana shops, and limits on the amount of marijuana that may be purchased under the bill. Representative Pabon provided an overview of how the recreational marijuana industry will be taxed under separate legislation, and the regulation of marijuana marketing under rule-making allowed by House Bill 13-1317.


09:02 AM

Representative Pabon responded to questions regarding the requirements placed on recreational marijuana shop owners by House Bill 13-1317, and the definition of "single transaction" under the bill as it pertains to out-of-state marijuana purchasers. Discussion ensued regarding restrictions against the participation of persons convicted of a felony in the recreational marijuana trade under the bill. Discussion returned to the vertical integration of the recreational marijuana trade by the bill. Representative Pabon responded to questions regarding a forthcoming amendment seeking to set benchmarks for driving under the influence of marijuana. Discussion followed regarding a provision in the bill governing the loaning of money by banks to recreational marijuana businesses, and the position of the federal government on Colorado's legalization of recreational marijuana. Representative Pabon responded to questions regarding the ability of local governments to tax recreational marijuana under pending legislation.


09:13 AM

The following persons testified regarding House Bill 13-1317:

09:13 AM -- Ms. Barbara Brohl, and Mr. Ron Kammerzell, representing the Department of Revenue (DOR), testified regarding the bill. Committee members received copies of Ms. Brohl's comments (Attachment B), and a list of responses to questions asked of the DOR by the Joint Select Committee (Attachment C). Ms. Brohl discussed the work of the department's Medical Marijuana Division, and the work of Mr. Kammerzell in the area of enforcement. Ms. Brohl provided background on the financing of the Medical Marijuana Division, and discussed efforts undertaken by the division to reduce its overhead after the failure of legislation seeking to change its financing. Ms. Brohl discussed license fee collections by the department from medical marijuana businesses, and additional efforts undertaken to balance the Medical Marijuana Division's finances.

13HseState0424AttachB.pdf13HseState0424AttachB.pdf 13HseState0424AttachC.pdf13HseState0424AttachC.pdf

09:24 AM

Ms. Brohl discussed efforts undertaken by the department to address recommendations made by a performance audit of the Medical Marijuana Division, and the department's efforts to prepare for the implementation of Amendment 64. Ms. Brohl and Mr. Kammerzell addressed questions raised earlier about the use of the fingerprint-based criminal record check under House Bill 13-1317, and plans on the part of the DOR to address the safe handling of recreational marijuana-related tax revenue. Discussion ensued regarding the number of employees required by the department to implement Amendment 64.


09:35 AM

Discussion ensued regarding DOR's plan for the destruction of seized marijuana, as directed by the Office of the State Auditor, and the adequacy of House Bill 13-1317 in guiding the department in its rule-making for recreational marijuana. Discussion followed regarding the tracking and regulation of marijuana products by the department under the bill. Ms. Brohl and Mr. Kammerzell responded to questions regarding the expected growth of the recreational marijuana industry in the coming years.


09:46 AM

Discussion ensued regarding the potential for controlling the flow of recreational marijuana beyond Colorado. Discussion returned to the amount of staffing and other resources required to implement Amendment 64. Discussion followed regarding the creation of the Marijuana Cash Fund to support both recreational and medical marijuana regulation. Discussion again returned to the number of employees required by the DOR to implement Amendment 64. Discussion turned to the vertical integration of the recreational industry under a forthcoming amendment, and potential changes to the regulation of the industry going forward.


09:58 AM

Discussion returned to the tracking of marijuana inventory by DOR. Mr. Kammerzell discussed the differences between regulating marijuana and alcohol, and responded to questions regarding certain challenges associated with regulating recreational marijuana. Ms. Brohl provided input regarding the challenges DOR faces in tracking marijuana inventory, and contingency plans on the part of DOR in the event the federal government intervenes in Colorado's recreational marijuana trade.


10:14 AM

Mr. Kammerzell provided input on forthcoming amendment L.001 (Attachment D), and the reasons for the changes made by the amendment.

13HseState0424AttachD.pdf13HseState0424AttachD.pdf

10:20 AM -- Mr. David Blake, representing the Department of Law, testified in support of House Bill 13-1317. Mr. Blake related that the Attorney General is disappointed that a bill seeking to place a benchmark on marijuana blood content while driving failed in the Senate, and supported potential efforts to implement such a benchmark. Mr. Blake requested that the General Assembly defer to bodies assembled to make recommendations on marijuana issues, and urged the marijuana industry to police the extreme elements in the marijuana debate. Discussion ensued regarding the process that led to House Bill 13-1114, concerning penalties for persons who drive while under the influence of alcohol or drugs, and the science surrounding the ability to detect driving under the influence of marijuana. Mr. Blake responded to questions regarding the federal government's position on the legalization of recreational marijuana in Colorado.


10:35 AM

Discussion returned to the potential establishment of penalties for driving under the influence of marijuana, and the differences between a "permissible inference" standard and "per se" jurisprudential standard for marijuana intoxication. Mr. Blake responded to questions regarding the level of marijuana in the blood that would trigger charges for driving under the influence of marijuana under House Bill 13-1114.

10:43 AM -- Mr. Mike Elliott, representing the Medical Marijuana Industry Group, testified in support of House Bill 13-1317. Mr. Elliott discussed a potential compromise over vertical integration of the medical marijuana industry, and supported such vertical integration.

10:46 AM -- Ms. Jessica LeRoux, representing rural marijuana businesses, testified regarding the bill. Ms. LeRoux discussed the impact of siting restrictions associated with vertical integration on rural marijuana businesses, and testing the THC levels of certain marijuana products. She objected to certain packaging requirements in the bill.

10:49 AM -- Mr. Chris Halsor, representing the Colorado District Attorneys Council, testified in support of House Bill 13-1317. Mr. Halsor discussed the science associated with detecting marijuana intoxication through blood tests. Committee members received a handout detailing the science in this area (Attachment E), which Mr. Halsor discussed. Mr. Halsor also explained how a police officer would enforce laws pertaining to driving under the influence of marijuana. Mr. Halsor responded to questions regarding the level of marijuana in the bloodstream indicating marijuana intoxication, and studies associated with the science of detecting marijuana intoxication. Discussion ensued regarding a recent court case adjudicated in Missouri pertaining to detecting marijuana intoxication.

13HseState0424AttachE.pdf13HseState0424AttachE.pdf

11:03 AM -- Mr. Doug Robinson, representing SMART Colorado, testified regarding the bill. Mr. Robinson provided background on his organization, and expressed concerns about a recent meeting pertaining to the implementation of Amendment 64. Mr. Robinson made suggestions regarding how to implement this amendment, and expressed concerns about certain provisions in the bill.

11:06 AM -- Mr. Chris Tanaka, representing himself, testified regarding House Bill 13-1317. Mr. Tanaka suggested amending the bill to allow on-site consumption of recreational marijuana, and discussed the benefits of doing so.

11:09 AM -- Mr. Mike Feeley, representing SMART Colorado, testified in support of the bill. Mr. Feeley discussed the vertical integration of the recreational marijuana industry, and questioned the direction the recreational marijuana market will take in the future. Mr. Feeley supported total vertical integration, and discussed his reasons for supporting it.

11:13 AM -- Mr. Ed Tauer, representing himself, testified in support of House Bill 13-1317. Mr. Tauer discussed the compromises that went into drafting the bill.

11:15 AM -- Ms. Annmarie Jensen, representing the Colorado Association of Chiefs of Police, testified in opposition to the bill, explaining that she has not seen all of the bill's proposed amendments. Ms. Jensen registered objection to the rule-making authority granted to the DOR, and supported the permissible inference standard for prosecuting driving under the influence of marijuana. Ms. Jensen mention the banking and licensing elements of the bill, and provided her organization's position on vertical integration of the recreational marijuana industry. Ms. Jensen suggested putting a moratorium on allowing new marijuana businesses. Ms. Jensen responded to questions regarding the ability of DOR to track marijuana inventories since growing and vending the product do not take place on the same site.

11:23 AM -- Ms. Teri Robnett, representing the Medical Cannabis Action Network, testified in opposition to the bill. She expressed her concern with adding an amendment concerning driving under the influence (DUI) of marijuana. She said that if the amendment is passed, medical marijuana patients should be exempted. Ms. Robnett responded to questions from Representative Salazar concerning blood draws for DUI investigations. Discussion continued concerning the U.S. Supreme Court decision about a warrantless blood draw in Missouri.

11:29 AM -- Mr. Tad Bowler, representing Rocky Road Remedies, testified regarding the bill. He referred to previous testimony from an activist group from Colorado Springs. He discussed his experience in the medical marijuana industry.

11:32 AM -- Ms. Kristi Kelly, representing Good Meds and the Cannabis Business Alliance, testified in support of the bill. She expressed support for an amendment concerning vertical integration. She spoke about her concerns with federal intervention. She stated that there is not a need for physical barriers separating medical and non-medical marijuana sides of a business. Ms. Kelly discussed the current model for medical marijuana businesses.

11:35 AM -- Mr. James McVaney, representing himself as a disability advocate, testified in opposition to the bill. He said that he and many other business owners are against a vertical integration model. He discussed his concerns with the capital needed for vertical integration. Mr. McVaney responded to questions from Representative Ryden about the timing of implementation of vertical integration for the marijuana industry.

11:38 AM -- Mr. Mark Belkin, representing the United Food and Commercial Workers Union Local 7, testified in support of the bill. He discussed the impact of the bill on Colorado's job market, and suggested that the bill will help eliminate the black market in marijuana. Mr. Belkin suggested that his union will help to implement safe handling practices for marijuana.

11:41 AM -- Ms. Cheri Hackett, representing the Associated Cannabis Trades, testified regarding House Bill 13-1317. Ms. Hackett spoke in opposition to amending the bill to address the DUI issue, and provided a history of the issue. Ms. Hackett responded to questions regarding the vote on the issue in the Colorado Commission on Criminal and Juvenile Justice.

11:46 AM -- Mr. Jason Warf, representing the Colorado Springs Medical Cannabis Council, testified in support of the bill. Mr. Warf discussed a recent meeting seeking compromise on certain aspects of House Bill 13-1317, and said his organization would not support the bill if amendment L.002 were to pass. He discussed his reasons for opposing the amendment.

11:48 AM -- Mr. Kevin Bommer, representing the Colorado Municipal League and Colorado Counties, Inc., testified in support of the bill. Mr. Bommer discussed the work of the Joint Select Committee, and expressed support for the bill because it allows for local control on recreational marijuana issues. Mr. Bommer explained the effect of prepared amendment L.003. Mr. Bommer responded to questions regarding the Colorado Municipal League's position on the vertical integration of the medical marijuana industry, as well as its position on recreational marijuana vendor licensing at the local level.


11:55 AM

The committee discussed the process for considering amendments.


12:00 PM

The committee recessed.


12:08 PM

The committee returned to order. Representative Pabon explained the effect of prepared amendment L.001 (Attachment D).
BILL:HB13-1317
TIME: 12:10:35 PM
MOVED:Moreno
MOTION:Adopt amendment L.001 (Attachment D). The motion passed without objection.
SECONDED:Labuda
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:12:36 PM
MOVED:Moreno
MOTION:Adopt amendment L.015 (Attachment F). The motion passed without objection.

13HseState0424AttachF.pdf13HseState0424AttachF.pdf
SECONDED:Labuda
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:11:03 PM
MOVED:Melton
MOTION:Adopt amendment L.013 (Attachment G). The motion was withdrawn.

13HseState0424AttachG.pdf13HseState0424AttachG.pdf
SECONDED:Labuda
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


12:14 PM

Various committee members expressed support for, or opposition to, severed section 2 of amendment L.002 (Attachment H).

13HseState0424AttachH.pdf13HseState0424AttachH.pdf
BILL:HB13-1317
TIME: 12:14:16 PM
MOVED:Foote
MOTION:Adopt severed section 2 of amendment L.002 (Attachment H), page 2, line 8 through the remainder of the amendment. The motion passed on a vote of 7-4.
SECONDED:Williams
VOTE
Dore
Yes
Foote
Yes
Humphrey
No
Labuda
Yes
Melton
No
Moreno
No
Nordberg
Yes
Scott
Yes
Williams
Yes
Salazar
No
Ryden
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB13-1317
TIME: 12:15:50 PM
MOVED:Moreno
MOTION:Adopt severed section 1 of amendment L.002, page 1, line 1 of the amendment through page 2, line 7. The motion passed without objection.
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:14:34 PM
MOVED:Moreno
MOTION:Adopt prepared amendment L.013 (Attachment G). The motion passed without objection.
SECONDED:Foote
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:30:54 PM
MOVED:Foote
MOTION:Adopt amendment L.003 (Attachment I). The motion passed without objection.

13HseState0424AttachI.pdf13HseState0424AttachI.pdf
SECONDED:Williams
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:31:09 PM
MOVED:Salazar
MOTION:Adopt amendment L.018 (Attachment J). The motion passed without objection.

13HseState0424AttachJ.pdf13HseState0424AttachJ.pdf
SECONDED:Melton
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:33:11 PM
MOVED:Williams
MOTION:Adopt amendment L.004 (Attachment K). The motion passed without objection.

13HseState0424AttachK.pdf13HseState0424AttachK.pdf
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:34:01 PM
MOVED:Williams
MOTION:Adopt amendment L.006 (Attachment L). The motion passed without objection.

13HseState0424AttachL.pdf13HseState0424AttachL.pdf
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:35:40 PM
MOVED:Dore
MOTION:Adopt amendment L.007 (Attachment M). The motion passed without objection.

13HseState0424AttachM.pdf13HseState0424AttachM.pdf
SECONDED:Williams
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:38:10 PM
MOVED:Dore
MOTION:Adopt amendment L.008 (Attachment N). The motion passed without objection.

13HseState0424AttachN.pdf13HseState0424AttachN.pdf
SECONDED:Nordberg
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:40:19 PM
MOVED:Nordberg
MOTION:Adopt amendment L.010 (Attachment O). The motion passed without objection.

13HseState0424AttachO.pdf13HseState0424AttachO.pdf
SECONDED:Humphrey
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:46:10 PM
MOVED:Foote
MOTION:Adopt amendment L.014 (Attachment P). The motion passed without objection.

13HseState0424AttachP.pdf13HseState0424AttachP.pdf
SECONDED:Williams
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:47:27 PM
MOVED:Salazar
MOTION:Adopt amendment L.016 (Attachment Q). The motion passed without objection.

13HseState0424AttachQ.pdf13HseState0424AttachQ.pdf
SECONDED:Melton
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:48:15 PM
MOVED:Melton
MOTION:Adopt amendment L.017 (Attachment R). The motion passed without objection.

13HseState0424AttachR.pdf13HseState0424AttachR.pdf
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:49:22 PM
MOVED:Melton
MOTION:Adopt amendment L.020 (Attachment S). The motion was withdrawn.

13HseState0424AttachS.pdf13HseState0424AttachS.pdf
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


BILL:HB13-1317
TIME: 12:57:57 PM
MOVED:Foote
MOTION:Adopt amendment L.021 (Attachment T). The motion passed without objection.

13HseState0424AttachT.pdf13HseState0424AttachT.pdf
SECONDED:Williams
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 01:00:41 PM
MOVED:Melton
MOTION:Adopt amendment L.022 (Attachment U). The motion was withdrawn.

13HseState0424AttachU.pdf13HseState0424AttachU.pdf
SECONDED:Salazar
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


BILL:HB13-1317
TIME: 01:07:06 PM
MOVED:Melton
MOTION:Adopt amendment L.023 (Attachment V). The motion was withdrawn.

13HseState0424AttachV.pdf13HseState0424AttachV.pdf
SECONDED:Dore
VOTE
Dore
Foote
Humphrey
Labuda
Melton
Moreno
Nordberg
Scott
Williams
Salazar
Ryden
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Withdrawn


01:12 PM

Representative Pabon provided closing remarks in support of House Bill 13-1317.
BILL:HB13-1317
TIME: 01:13:52 PM
MOVED:Foote
MOTION:Refer House Bill 13-1317, as amended, to the Committee on Finance. The motion passed on a vote of 6-5.
SECONDED:Williams
VOTE
Dore
No
Foote
Yes
Humphrey
No
Labuda
Yes
Melton
No
Moreno
Yes
Nordberg
No
Scott
No
Williams
Yes
Salazar
Yes
Ryden
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS